How Do We Identify Shitcoin......001

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Ofcourse they always looks attracting and shiny until they make us lose great amount of funds and it seems one can't mention cryptocurrencies without shitcoin as it seems that they have polluted the crypto space for it's negative impact.

Shitcoins seem to be on even greater rise ever since the last bull run when it seems they came to their peak as people rush in on them without giving much thought to anything, few ofcourse no doubt benefited but a great deal of people suffered.

If only we could identify or know how to know if a coin is shitcoin maybe it will help to avoid this scam coin I believe or atleast make one to be armed and be on the guard against it.

I will be listing out a few things to take note of which will no doubt help us identify if a project is scam or if any crypto asset is a shitcoin as the case maybe.

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Helpful Tips To Identifying Shitcoins

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Without much deliberation I will quickly dive into it;

Whitepaper Analysis: One way to identify or that will help us in determining the true nature of a coin is to analyze the projects white paper as this will help us understand things about this project if we don't think it has a clear purpose which is well defined.

When we analyze the white paper and see things aren't adding up or find somethings there to be highly questionable then we must avoid such project at all cost we should always act with caution.

Team Credibility: Another way we can know if a project is legit is based on the team behind such project, we ought to check the team's credibility, determining the credibility of the team will go a long way in determining if a project is legit or not.

When we see those behind a project we need to check their credentials and how experience the team is because that goes a long way in determining the legitimacy of the coin they have created, if they are credible and an experienced team then odds are they know what they are doing ifnot then the reverse is the case.

Community Engagement: also we need to check how active they are as a community as a good project always garner massive engagement from it's supporters unlike a scam project when the members are active and they are always engaging then most likely it is a healthy project.

So what we will do is to check across various social media accounts topics or people's comment and discussion about the project that will also help us in knowing or determining if it's shitcoin or not.

Use Case: When it comes to knowing if a coin is shitcoin or not then this is very important or even the most integral dare I say, it's a very important way of knowing the legitimacy of a coin.

We need to know what's this coin use case?what's the purpose or application? why was it created? Which needs does it aim to satisfy? What's it's promises and how does that reconcile with their white paper.

Understanding or gaining clear answers to this questions will help to determine the solidity and credibility of the coin as every solid project ought to have a strong utility or needs it aims to satisfy.

Transparency: For a coin to be considered legit it ought to be transparent, most shitcoin are not transparent they do not offer updated information on the progress of the project development.

So when considering if a coin is scam or if it's shitcoin then transparency is important as if it's not transparent then it raises a great issue about the validity of such coin.

So these are all ways to know if a coin is shitcoin or not, these are all what we have to put into consideration when reaching a decision.

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Conclusion

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It's very vital we take to heart this helpful tips especially for people who might be naive or newbies so as not to mistake a scam project as one that's having good potential or as a good project, we this must be wise to guard against risky venture and if we dare to go in then ensure we do this with the full knowledge and should take full responsibility for all loss incured.